Australian Big Business BHP has experienced three turning points in the Company history: the first one is the embarking in iron & steel project in 1915, the second is the finding of off-shore oil field in 1967, and the third is the acquisition of Utah International in 1984. This research focuses on the first epoch-making time of the launching of iron & steel industry.In the late 1890s BHP employed vertical integration policy, that is, the policy of the procurement of raw materials by themselves. They managed to get a huge iron ore deposit as one of flux materials for smelting Broken Hill lead and zinc ore. The deposit was so large that BHP got an enormous surplus of iron ore. On the other hand there was a growing demand for steel products in just-federalized Australia.From BHP viewpoint, there were inside unbalance of production process and outside unbalance of steel demand and supply. There arose an opportunity for innovation by connecting both unbalances, inside and outside. BHP utilized this opportunity and established the new iron and steel industry.BHP's success of the new industry was supported not only by the innovative entrepreneurship of the General Manager G.D.Delprat, but by the advanced managerial skills accumulated since the company establishment of 1885.Enterprise has no guarantee of business continuity for the future without the entrepreneurship to search changes, to respond changes, and to utilize changes, and also without managerial skills to implement the innovation.The modernization of business enterprise means the appearance of the companies which depend on the managerial skills or abilities for their existence. The process of launching the iron and steel industry of BHP shows the advent of modernization of Australian mining enterprise.